AIG and The Carlyle Group Announce Strategic Partnership
AIG and The Carlyle Group announced today a strategic partnership to build DSA Re into a standalone provider of reinsurance, claims handling, and run-off management solutions.
Established in February 2018, Bermuda-based DSA Re currently reinsures $36 billion of AIG’s Legacy Life and Annuity and General Insurance liabilities. Utilizing Carlyle’s expertise in separating and standing up companies, AIG and Carlyle plan to build DSA Re into a platform that complements DSA Re’s financial strength with its strategically differentiated capabilities. As part of the transaction, Carlyle will acquire a 19.9% stake in DSA Re and enter into a strategic asset management relationship whereby DSA Re and AIG will, in aggregate, allocate $6 billion of assets into various Carlyle managed strategies across corporate private equity, real assets and private credit.
“AIG launched DSA Re to help us efficiently manage our legacy liabilities, honor our policy obligations and maximize financial flexibility. This partnership with Carlyle meets these objectives while allowing AIG to free up capital and participate in the build-out and growth of the business. We look forward to working closely with Carlyle to position DSA Re for long-term success.” – President and CEO of AIG, Brian Duperreault.
“This strategic partnership extends Carlyle’s investment capabilities into the $15 trillion global insurance industry. Carlyle is excited to deliver our global investment platform across a variety of asset classes to DSA Re, and will work to generate attractive returns for the DSA Re portfolio for many years to come. We have a terrific partner in AIG, and will work closely together to help DSA Re become independent and positioned for growth over time.” – Co-CEO of The Carlyle Group, Kewsong Lee.
The transaction is expected to close in approximately 60 days, subject to required regulatory approvals and other customary closing conditions.